Maine Foreclosures For Sale
Although pre-foreclosure purchases are possible it is sometimes thought best to actually purchase Maine foreclosures for sale directly from the bank as this is less troublesome and generally speaking there is less risk involved for the investor. Maine foreclosures for sale purchased directly from the bank of the broker used by the bank are ready to go, with all judgments, liens and taxes already having been paid, which means the title is clear.
Many more experienced investors, feel that risk comes with rewards, they actually choose to close a sale with a homeowner in the pre-foreclosure phase, and although the risk is greater, so too are the profits if they succeed. Basically this means that the investor really need to know what they are doing, have boned up on all the disclosure laws, have approached, and managed to meet with the homeowner, and is still interested in owning the property, all risks aside.
Once all these details have been taken care of, to prevent the property becoming just another of many Maine foreclosures for sale, the investor has to make and offer to purchase. If the homeowner accepts the offer to purchase, both he and the investor will have to sign a purchase agreement. This is generally referred to as an “Equity Purchase” or “Real Estate Purchase and Sale Agreement”. This has to be signed by all parties in the existing mortgage contract.
It is vital for any investor to first check with an attorney who is versed in estate equity purchases. Experts in this kind of investment field advise that all terms of the agreement must be clearly stated in the purchase agreement, nothing should be left to verbal understanding, everything must be in writing. This is the investors’ best defense in case of any problems arising in the future. All of the following is required to be included in the purchase agreement:
- A clause which reads “subject to” if something originally agreed upon is reneged upon, this allows the investor to bow out.
- A clause allowing you to show the property
- A clause indicating that the property has to be appraised at a particular value
- A clause regarding tenants and vacancy of the property
- Agreement between seller and buyer that current loans = “x” amount.
- A clause to indicate the sale is “subject to” encumbrances against the title
- State the buyer will meet all closing costs
- A clause to state that the seller will “deed” the property to the buyer, and all other matters that go together with the “deeding” of properties in Maine
- The seller is aware that the buyer may resell the property
- Vacate the premises at the appropriate specified date
- A clause that the seller is aware the price might be below the property market value
- A clause to state that the buyer will pay all net proceeds to the seller on closing.
Foreclosures in Maine Top Counties
- Penobscot County
- York County
- Cumberland County
- Kennebec County
- Androscoggin County
- Search Foreclosures by State
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